MPs hold crisis talks to protect thousands of BAE jobs at risk from £31bn merger with European agency

MPs will hold official hearings into the potentially catastrophic impact of the sale of BAE on British jobs and exports.
On Friday night former defence secretaries and ministers lined up to question the plans.
They spoke out as it emerged that the MoD was kept in the dark about the deal – while the Prime Minister and Foreign Secretary have known about it for months.

Discussions: MPs will hold crisis talks next week in an attempt to protect the jobs of British workers employed by defence giant BAE Systems

The company – formerly known as British Aerospace – employs almost 40,000 in the UK.
MPs last night called for the deal to be scrapped if BAE could not guarantee British jobs.

 

Thousands of jobs may be at risk if its planned £31billion link-up with the European Aeronautic, Defence and Space Company (EADS) goes ahead.
Airbus-owner EADS, which is backed by Paris and Berlin, would hold 60 per cent of the shares in the resulting group.
A meeting of MPs with BAE factories in their constituencies has been arranged for Monday.
Many of the largest assembly sites are in the North of England, Wales and Scotland – areas struggling with unemployment.
Chorley MP Lindsay Hoyle said: ‘If this merger does not mean greater job security, and more jobs in Lancashire and the North West, then it is my view that it should not take place.’

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The Government has a ‘golden share’ in BAE, which is designed to protect a strategic industry from foreign control. It means that ministers can veto any deal which would see the UK’s defence interests fall into overseas ownership.
The companies argue that the deal would diversify BAE away from defence – an area at risk from military budget cuts – into civilian aircraft, on which EADS focuses.
The Unite union has demanded meetings with ministers to guarantee that highly technical jobs will not end up being moved to France or Germany.
Reports last night suggested that ministers knew about the potential deal weeks ago, but were sworn to secrecy.
BAE said the resulting company will have its defence headquarters in London, but its commercial division centred in Paris.

Demands: MPs last night called for the deal to be scrapped if BAE could not guarantee British jobs